The latest IBS Intelligence report, in partnership with CR2 (www.cr2.com), looks at how critical digital onboarding is for banks and other financial institutions to retain their current customers while also attracting new ones. As a result, banks are attempting to create an easy, tailored, and frictionless end-to-end digital buying and contracting experience. Having the capability to digitally onboard customers simplifies and streamlines the very first user experience that a customer has with the bank as well as significantly reducing the cost of customer onboarding.
Due to the COVID-19 pandemic, banks and financial services providers have faced unanticipated challenges. As clients shift online to receive essential services, the financial industry needs to rethink the future of digital banking through quick adaption methods and a deeper focus on banks’ digital presence. Digital customer onboarding has become the buzzword in the industry as business leaders begin to recognise the enormous potential of digitisation.
The benefits and drivers of digital onboarding for banks are abundant, including higher efficiency and cost optimisation. IBS Intelligence’s 4S framework sheds light on the essentials of digital onboarding. For a digital onboarding platform to provide the imagined benefits, it must have the following characteristics: Speed, Smart, Secure, Seamless.
In the Banking and Financial Services sector, digital onboarding addresses some of the long-standing issues with traditional onboarding models. It helps businesses onboard new clients remotely and quickly through integrated customer journeys.
Digital onboarding is the start of a customer’s digital banking journey. A holistic digital transformation must supplement a seamless digital onboarding experience, and a solid digital ecosystem is required to cater to higher customer expectations. Both digital banks and traditional financial institutions will need to develop strategies and solutions tailored to their specific environments.